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RAPAPORT... Zale Corporation reported that its revenue slipped 2.6 percent year on year to $431 million for the third quarter that ended on April 30. Nonetheless, Zale narrowed its cost of sales 9.5 percent to $189.8 million, resulting in improved gross margin of 56 percent compared with 52.6 percent on year earlier. Profit surged 74.6 percent to $8.8 million. Comparable-store sales rose 0.6 percent, however, the increase was 1.9 percent on a constant exchange-rate basis. Inventory levels rose 2 percent to $845.4 million and long term debt fell 2.7 percent to $454 million.
The jewelry retailer stated that sales so far for the month of May had contracted on a same-store basis, but it was able to maintain a consistent level of gross margin. Zale scheduled a special meeting of shareholders in Dallas on May 29 to vote on the proposed acquisition by rival Signet Jewelers.
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